Energy transition investment outlook: 2025 and beyond

Explore eight key questions on energy transition investment and the organizations shaping the future of energy
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  1. 1,400

    senior executives

  1. 36

    countries

  1. 74%

    investing US$100 million+ in energy transition assets


As the global energy landscape evolves, financial investors and corporates are navigating the complexities of the energy transition. This transformation offers significant investment opportunities, driven by the need to enhance energy efficiency, expand renewable energy capacity, and modernize infrastructure.

However, with opportunities come challenges, from regulatory uncertainty to market volatility. The Energy transition investment outlook: 2025 and beyond provides critical insights from 1,400 senior executives across 36 countries and territories, highlighting investment trends, risks, and the evolving strategies that are shaping this journey.



Energy transition investment outlook: 2025 and beyond

Exploring eight key questions on energy transition investment and the organizations shaping the future of energy


Key findings from our research

  1. 72%

    Seventy-two percent of investors report that investment in energy transition assets is accelerating, even amid geopolitical volatility and fluctuating interest rates. The commitment to energy transition remains robust across sectors.

  2. 64%

    Sixty-four percent of investors are engaging with a variety of opportunities: 64 percent have invested in energy efficiency technologies, 56 percent in renewable energy, 54 percent in energy storage, and 51 percent in transport and related infrastructure. 

  3. 75%

    While renewables are a growing focus, 75 percent of investors are still engaging in fossil fuel projects, especially natural gas, recognizing the role fossil fuels play in ensuring energy security as the transition continues. 

  4. 94%

    Collaboration is crucial in managing risk. Ninety-four percent of investors seek partnerships that share resources and expertise, helping to navigate financial, regulatory, and operational complexities in energy transition projects.

  5. 78%

    Regulatory and policy risks are the top concerns for investors, with 78 percent citing these as key challenges. Unpredictable government policies and shifting regulations can stall long-term investment plans and disrupt capital flows.

What can investors and corporates learn from the Energy transition investment outlook: 2025 and beyond?

Which assets are attracting the most investment, and why?

Explore the growing focus on energy efficiency, renewable energy, and infrastructure upgrades as drivers of investment.

Which regions are leading in energy transition investments?

Discover why East Asia, Europe, and North America are leading the charge, and which emerging markets are becoming investment hotspots.

Why are investors still engaged in fossil fuel projects?

Understand the balancing act between renewable energy growth and the ongoing necessity of fossil fuels for energy security.

What are the biggest challenges facing energy transition investors?

Examine the regulatory, technological, and financial risks that investors must manage in order to succeed.

 

How can partnerships help mitigate investment risks?

Learn how collaboration across sectors, including public-private partnerships, is key to managing the risks associated with energy transition projects.
 

What is the outlook for the next two years?

Gain insights into the future of energy transition investment, including anticipated growth in energy efficiency, renewables, and transportation infrastructure.

 


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Our authors

Grant Hill

Managing Director, M&A, Climate & Decarbonization

KPMG in the UK

Elizabeth Ming

Partner, Sustainability Audit, Private Equity, KPMG LLP

KPMG in the U.S.

Geri McMahon

Partner, Climate Change & Sustainability Services

KPMG Australia

Daisy Shen

Head of Climate & Sustainability

KPMG in China


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